EXECUTIVE SUMMARY

As part of the course curriculum of degree of Master of Business Administration of Mahatma Gandhi
University I am required to undertake an organisation study in an organization in second semester. I
have done this study in MRF Ltd Kottayam Unit in Kerala.

MRF Ltd is the most reputed tyre manufacturer in India. MRF is the first Indian company to compete
in the international tyre industry. This rich heritage prompted me to choose this company for my
study. In MRF Ltd during my four weeks of study I mainly focused on the functioning of various
departments and the overall structure of the organization

The objectives of my study are, to know the tyre industry in general and the organizational structure
of the company, various functioning of the company, and different departments of the company.

The scope of this organizational study includes a general understanding of the importance of tyre
industry, the functional department of the company, especially marketing and HR, organization
structure of the company and a SWOT analysis.

The scope of this organizational study includes a general understanding of the importance of tyre
industry, the functional department of the company, especially marketing and HR, organization
structure of the company and a SWOT analysis.

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 INDUSTRIAL PROFILE

Rubber industry in India

The Indian goods industry is now more than 80 years old. The 1 st factory has been set up in 1920 at
Calcutta. Today the industry consists of 3500 manufacturing units.

The rubber goods industry plays a very important role in the development of road transport sector.
The industry can be broadly classified in to tyre and non-tyre section. The rubber goods unit
consumes three types of rubber; natural rubber, synthetic rubber and reclaimed rubber. The rubber
industry’s performance in physical term was not up to the mark of some years, but its financial
performance was good. The industry is the third largest contributor to the nation exchequers by way
of duties and taxes.

Tyre is a covering for the outer rim of a wheel. The main feature of rubber tyre ability to absorb the
shock and strain created by bumps in the road; provide a comfortable ride and protect many kinds
of cargos, the rubber in a rubber tyre supports the weight of a vehicle. Another important feature of
their ability to grip the road.

The pneumatic tyre was invented in 1845 by Robert.W.Thomson, a Scottish engineer. In 1970 the 1 st
solid rubber tyre appeared in English. John and Dunlop, a Scottish Veterinary surgeon improved on
Thomson’s invention in 1988.

Tyre is rather a contrast industry especially when its linkage with Indian economic growth is
concerned. There are 22 major tyre companies in the country, 10 are larger undertaking producing a
wide range of tyre including bus and truck tyres. There are 12 medium sized companies.

The tyre industries were classified under 3 heads;

The 1st generation companies viz: Dunlop and Firestone (New Bombay Tyre International Ltd) were
set up in the last 30’s and early 40’s.

The 2nd generation companies then come up in 60’s .they are MRF tyres, CEAT, GOOD YEAR and
PREMIER.

The 3rd generation companies that were setup in 70’s .they are JK Tyres, VIKRANT, APPOLO and
MODI tyres.

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Indian tyre markets

Market for tyres can be broadly classified or segmented in to 3 categories;

 Original Equipment Market (OEM)

 Replacement Market
 Export Market

Maintain demand is generated by the replacement market where business volume is high. While the
OE demand is a linear function of Automobile production whose growth in turn is determined by
overall economic situation and the government policy. India is still in cross ply tree age when
advanced countries are in to radial tyres and tubeless tyres.

Though the tyre majors have been twinkling of getting into truck radial segment but no official
moves have been made by the major tyre companies. This point out that radial tyres are not actually
suited for Indian environment.

Tyre industry in India is predominantly dependent on natural rubber as against synthetic rubber,
experts say that the ratio of natural rubber usage to synthetic rubber could be as high as 80:20 but it
is just the opposite in abroad.

Global ranking of Major Tyre Companies (as per Sept.2008)

1. Michelin
2. Bridgestone
3. Goodyear
4. Continental
5. Sumitomo
6. Pirelli
7. Yokohama
8. Kumho
9. Cooper
10. Toyo
11. Hankok
12. MRF
13. Oksta
14. Shanagai
15. Chingshi

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Indian Tyre Industry-Salient Features

1. Adaptability & absorption

Successful and fast absorption of international technology and availability of technical

expertise and professional to absorb and implement technological advancements.

2. Innovativeness
Several innovations were introduced to apply international technologies to manufacture
tyres suitable for Indian road conditions.
3. Exports
Sustained exports for over a decade to more than 50 countries. All large tyre companies
are exporting tyres of which 30%exports is to USA.
4. Technology progression
Within a span of 4 decades, technology had progressed as well as tyre industry had moved
from cotton (reinforcement) carcass to high performance radical tyres’
5. Wide product range for diverse usage
From a Moped/Light motor cycle tyre weighting 1.5 kg. To an earth mover tyre weighting
1.5 tone tyre industries in India, manufactures them all.
6. Indigenous & ready availability
New vehicle manufacturers while launching as a series of their latest models have easy
access to and ready availability of indigenous tyres of their respective specification and
matching of international standards.

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 POLICIES OF MRF

QUALITY POLICY OF MRF

It is to maintain market leadership through continuous quality improvement.

To achieve this goal, all the MRF plants and the corporate office shall pay particular attention to the
following;

 Product/process improvements by field/plant performance monitoring and prompt service

to the customer.
 Up gradation of machinery to meet the increasing needs of the customer.
 Continuous training of all employees in order to acquire necessary skills and knowledge.
 At the plant level, respective Senior General Manager/General Managers are assigned the
responsibility of carrying out the quality systems by collaborating with corporate functions.

SAFETY POLICY OF MRF

It is the policy of our company that the Safety and Health of our employees shall be our first priority.

It is the responsibility of everyone in this organisation, regardless of the position he occupies, to

ensure that everyone in the factory returns home to his beloved ones without any injury today and
every day.

We shall observe this policy not only in letter but also in spirit and offer “ACCIDENT FREE SAFE
PRODUCTION” for the benefit of one and all. ENVIRONMENTAL POLICY OF MRF is to be
manufacturing our products in an environmentally friendly and safe manner.

To achieve this goal, all the MRF plants, together with corporate office shall;

 Minimize the impact of our manufacturing activities on the environment, especially the air,
water and soil.
 Comply with all applicable regularity requirements.
 Develop environmental performance evaluation procedures for continuous monitoring.
 Optimise the consumption of resources (water, energy and raw materials) by minimising
wastages, recovering and recycling where ever possible.
 Up gradation of the machinery and pollution control equipment when required.
 Train all the employees to perform their activities in an environmentally responsible safe
manner.

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At the plant level, the respective Senior General Managers/General Managers are assigned the
responsibility of carrying out the environmental system by collaborating with corporate functions.

TRAINING POLICY OF MRF

It helps to provide and develop knowledge, skills and behaviour of our employees to continuously
improve their performance.

To achieve this goal, all MRF plants together with the corporate office shall;

 Identify and document training needs of each employee, through competence evaluation
each year.
 Design and publish training calendar and schedule.
 Provide training periodically based on identified needs and as per the document schedule.
 Monitor and evaluate training process and outcomes to access and to decide the next
training cycle requirements.

At the plant level the respective Senior General Managers/General managers and Plant Managers
are assigned the responsibility of carrying out the training activities through Human Resources
Department of the plant and corporate office.

CORPORATE GOVERNANCE

MRF philosophy on corporate governance envisages the attainment of the highest level of
transparency, accountability and equity in all fact of its operations and all its interactions with its
furtherance to the above company has compiled with the crores.

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Major market players and their market share

Some of the major players in Indian tyre industry are MRF, Ceat, JK industries, Apollo tyres,
Bridgestone India, Goodyear India, Falcon Tyres and TVS Srichakra.

Name of the company Market Share

MRF Ltd. (Market leader) 24%
Apollo tyres Ltd. 21%
JK Tyre & Industries 18%
Ceat Ltd. 13%
Others 24%

OBJECTIVES OF THE COMPANY

The main objective of the company is ‘to attain global standard through continuous improvement in
the quality products and service in order to maintain market leadership.’ The main strategy of the
company in today’s competitive world is ‘cut cost and win the battle.’

As the number of accidents in similar factories is comparatively more, the emphasis of the company
is ‘accident free safe production’.

MRF Ltd. achieves the objectives by taking the following actions;

 Product/process improvement by performance monitoring and prompt service to the

customer
 Up gradation of all the machinery to meet the increasing needs of customer.

Continuous training is given to all employees in order to acquire necessary skills and knowledge and
improve the quality of work life.

Vision and Mission

The vision of MRF is to be a significant global player delighting customers worldwide and achieve
excellence in manufacturing. Its vision is to be a world class system driven by a team of motivated
high performers and achieve profitable growth. MRF has well defined and clearly quality
environmental safety and health training and Human Resource Policies.

The vision of MRF is to realise their policies and implement the contents there in letter and spirit.
Though MRF is exulting to nearly 100 countries the manufacturing centres are located in India only.

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MRF encourages being a multinational and for this purposes it is starting manufacturing in other
Asian countries like Sri Lanka.

MARKETING

Tyre and tyre related products are sold under the brand name “MRF” and distributed in domestic
markets through sales offices, dealers, and franchisees. Conveyor Belts are sold under the brand
name “MRF Muscle Flex” to customers directly from Conveyor Belting plant at Arkonam.

The major OEM (Original Equipment Manufacturers) customers of MRF tyres and re Ford India Ltd.,
General Motors India Ltd., Maruti, Hindustan Motors, TATA Motors, Ashok Leyland, Honda Siel, Hero
Honda, Bajaj, LML Ltd., Honda Motors & Scooters India Ltd., Mahindra & Mahindra, Eicher Motors,
New Holland, Volvo, etc. The major Conveyor Belting customers are Cement/Steel/Fertilizer/Thermal
Power Plants, Mines and Ports.

MRF exports tyres and tubes through authorised agents representing countries such as USA, Canada,
Mexico, Brazil, Chile, Australia, Philippines, Bangladesh, Sri Lanka, Korea, Egypt, Nigeria, South Africa,
Ghana, Kenya, Mauritius, UAE, Afghanistan, Pakistan, Iran, Syria, Bahrain, Qatar, Oman, Lebanon,
Greece, Turkey, Malta, UK, Uzbekistan, etc. MRF conveyor belts are exported to Australia, South
Africa, Europe, Canada, Middle East etc.

COMPANY PROFILE

The drama of the Indian roads is in full blossom. All of the world’s automobile majors are here.
SUZUKI,HONDA,MITSUBISHI&TOYOTA FROM JAPAN,DAEWOO&HYUNDAI from Korea, GM&FORD
from USA,FIAT&MERCEDES from Europe. For most of these automobile companies MRF is the tyre of
their choice. MRF tyres goes for 1 st tiement on FIAT UNO, FORD Escort, PEAL Astra , HONDA City
&FORD Ikon. The 1st DAEWOO Cielo too rolled out on MRF radials.

MRF was established in 1946. The company name is an acronym for “Madras Rubber Factory”. MRF
today is India’s largest manufacturers and market leader. In a short span of 50 years, it has become
one of the largest rubber companies both worldwide and in the Indian private sector. It is the only
tyre company straddle the sub continent with giant manufacturing facilities.

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Raw materials

The main raw materials for tyre are:

 Rubber (Natural or Synthetic)

 Carbon Black
 Nylon Cord
 Chemicals

The tyre industry is a major consumer of the domestic rubber production. Natural rubber constitutes
80% of the material content in Indian tyre where us 20% is from Synthetic rubber (World Wide this
ratio of natural to synthetic rubber is 30:70). A part from this different type of chemicals is used in
tyres. Locally available natural rubber is an adding advantage for the industry, since it costs 25% of
the total raw material cost of the tyres, where the synthetic rubber accounts for 14% of the total raw
material cost (India imports 60% of its synthetic rubber requirements).

Companies’ product profile

MRF brands are the market leaders in almost every segment; MRF brands are,

 Super lug (truck tyre)

 Shakthi (tractor tyre)
 Zigma (radial car tyre)

Though the years MRF has been ranked No.1 in various segments of the rubber industry. It is the
largest producer of produced retreads and perhaps the largest Asian today. In the global arena, MRF
is an active exporter to as many as 65 countries. It has become India’s largest and the world’s 12 th
largest tyre manufacturing company.

Automotive tyres are the main products of the company;

 Truck tyres-Tube type and Tubeless type

 Light truck tyres
 Special Tyre for defence
 Tyre for industrial application
 Agricultural tractor and tiller tyres
 Off the road tyres-solid tyres and earth mover tyres

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Non-tyre products

 Automotive tubes
 flaps
 Conventional tread rubber
 Pre-cured tread rubber
 Vulcanizing solution
 Tyre repair materials
 Conveyor Belts
 MRF metal coat
 MRF wood coat
 MRF glass coat

The Muscle Man

The corporate ethos is perfectly represented by the brand symbol The MRF Muscleman- embodying
strength, reliability, & durability.

The mere mention of the world “MRF” is bound to bring the Muscle man to the mind of Indians. The
muscle man has evolved in 1964 soon after MRF began exporting tyres. Over the past 33 years it has
evolved from a mere corporate Mascot to a symbol of strength, reliability and durability. Now the
muscle man grew to become India’s most trusted and well recognised symbol for tyres.

In the 1960s the Indian tyre market was completely controlled by the large multinational
companies. Around this time MRF opened tyre factory at Thiruottiyur in Tamil Nadu. With that came
a task of recognising an appropriate corporate brand symbol. In this process of developing
suggestions for the symbol, some enterprising employees conducted an informal market survey by
interviewing people from all over the country about their expectations from a good tyre. But one
day a truck driver at a road side Dhaba somewhere in western India hit upon the rigid idea when he
said “a good tyre should have all the qualities of a pehelwan(strongman). And by this simple
statement, the muscle man was born.

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 Quality Management System in MRF

The company has a quality assurance department, which was established after the collaboration
with Mansfield tyres USA. Quality is assured through the process of auditing, reporting and
correcting. This includes auditing right from the purchase of raw materials.

AUDITING

PROCESS STABILISATION REPORTING

CORRECTIVE & PREVENTIVE ACTION

Major competitors

 Apollo tyres
 Ceat Ltd.
 JK tyres
 Goodyear Ltd.
 Telco

Subsidiary institutions

 Funskool india Ltd.

 MRF Muscle flex Conveyor Belting
 Product-o-drome
 Paint & speciality coatings
 MRF pretreads
 MRF Pace Foundation
 MRF Power house
 MRF tyredrome
 Devon Machines

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 Achievements of the company

It was late 1946 , a period that was characterised by the indomitable spirit of freedom , and the “will
to win” among Indians A young pioneer called K.M.MAMMEN MAPPILAI started a small toy balloon
manufacturing unit in a small shed at Thiruvottiyur in Chennai. There were no machines in the unit
but it had an employee with bubbling enthusiasm, innovate ideas and a great vision he was owner
himself.

Any product that could be made from rubber, without machine was produced. From today balloons
to latest cast squeaking toys, industrial gloves and contraceptive, the list is very long.

1949-MRF established its first office at 334, Tham bu Chetty Street, Chennai.

1952- The first machine (a rubber mill) was installed at the factory and MRF ventured in to
manufacture of tread rubber.

1955-MRF started competing with foreign companies operating in India by becoming the only Indian
company to manufacture superior, extruded, non-blooming and cushion backed tread rubber

1956- MRF becomes the market leader in tread rubber with 50% share of Indian market. MRF’s hold
on the market was so strong that the foreign companies started withdrawing from the tread rubber
business in India.

1961-MRF becomes a public limited company. MRF entered in to technical collaboration with
Mansfield Tyre Company of USA and a pilot plant for tyre manufacture was established at
Thiruvottiyur.

1963-Full fledged tyre plant and rubber research centre were inaugurated by Indian’s first Prime
Minister Pandit Jawaharlal Nehru.

With the manufacture of tyres MRF started marching ahead, capitalizing on its strengths,
overcoming its weaknesses, exploring all opportunities and converting every threat in to an
opportunity for growth.

1973-MRF launched Indian’s first NYLON car tyre.

1978-MRF launched Super Lug 78 which later becomes the largest selling truck tyre in India.

1979-MRF’s turnover crossed Rs.100 crores.

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1980-MRF entered in to technical collaboration with BF Goodrich Tyre Company of USA. With third
began a significant exercise in quality improvement and new product development.

1984-MRF becomes the first tyre to be selected for fitment on Maruthi-800.

1986-MRF won 6 awards for quality improvement from B F Goodrich; pitted against 20 Tyres
Company’s worldwide. It also won the National Institution for Quality Assurance award in the same
year.

1987-MRF becomes the No.1 tyre company in India by crossing the Rs.300 crore turnovers. Since
then MRF has maintained its No.1 position to this date (2005).

1988-MRF place foundation was set up with Dennis Lillie as its director to nurture and develop the
talents of budding cricketers. It concentrated on developing pace bowlers and within a few years it
contributed pace bowlers to the Indian Cricket Team.

1989-MRF collaborated with world’s largest toy maker, Hasbro International and launched Funskool
India, the most modern toy project in Asia.

MRF collaborated with Vapocure of Australia to produce poly-urethane paint formulations.

MRF Zigma radials were launched along with MRF World Series Cricket which was one of the
country’s most spectacular cricketing and marketing events.

The 5th unit of MRF for manufacture of tyres and tubes was opened at Medak in Andhra Pradesh.

MRF tyres drome became India’s 1st tyre company owned wheel care complex.

MRF collaborated with Pirelli to manufacture conveyor belts called Muscle Flex. The same year MRF
brought the world boxing championship to India.

In this year the company bagged the Visvesvaraya award for the best business house in South India.
It also bagged the Haward business school award for best corporate performance.

1991-MRF moved in to its own corporate office which soon became a land mark in Chennai.

1996-In the golden jubilee year the company crossed a turnover of Rs.2000 crores and also set up a
new plant at Pondicherry for the manufacture of radial tyres.

1999-MRF was declared the most ethical company by the “Business World” in its survey.

2004-The company crossed a turnover of Rs.3000 crores.

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 MRF Ltd. KOTTAYAM UNIT

MRF tyres Ltd., Kottayam is one of the most modern plants and was set up in 1969 at Vadavathoor,
about 7 km from the Kottayam town in the state of Kerala, a hamlet lying on the outskirts of the
Kottayam district. About 10 crores of land was purchased in Vadavathoor village during 1968 and the
foundations stone for the factory building was laid by late Sri.K.M.Cherian. Availability of intelligent
and motivated labour, natural rubber in large quantity (Kottayam is the land of 3L’s-Latex, Letters
and Lakes), cheap power. Tariffs, tax concession and transportation facilities were the main reason
behind the choice of Kottayam as the 2 nd manufacturing facility of MRF.

A factory with an area of 34200 sq.ft. was constructed during the period of 1968 – 1969 and a ban
bury(internal mixer) of 3A size with a capacity to mix 10MT per day was erected and commissioned
on 21st July 1969,with a strength of 7 workmen, but presently it is a most advanced technology
mixing unit and a fully fledged manufacturing unit producing truck and tractor tyres.

The commissioning of tyre plant in 1994 was the beginning of a new era in the history of Kottayam
unit. Initially tractor front tyres were produced and then it diversified in to passenger tyres, tractor
rear and truck tyres of various sizes. Cement house was also built to prepare various cements and
paints required at tyre plant and also for the production of vulcanizing solution.

Kottayam plant supplies mixed rubber to other plants of MRF and hence with the increase in
demand, it became essential to augment the mixing capacity of the plant. A new plant exclusively for
mixing was built with huge internal mixers (Banbury’s) which have automatic carbon and oil charging
facilities. It houses two Banbury’s of P270 type and one Banbury of F620 type. With a mixing capacity
of -600 tonnes per day, this is one of the largest mixing units in Asia.

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 MANAGEMENT

The success or the failure of a company is determined by the performance of its management. It has
to play a major role in functions of such as decision making. Management of MRF is lead by Mr. K.M.
Mammen, son of Mr. Mammen Mappillai who started this company almost 60 years ago.

BOARD OF DIRECTORS

K.M. Mammen Chairman & Managing Director

Arun Mammen Joint Managing Director

K.M. Philip Whole Time Director

TRADE UNIONS
 MRFEU-MRF Employers Union
 MRFEA-MRF Employees Association
 MRFES- MRF Employees Sungh

MRF Kottayam unit has 4 plants;

1. Tube Plant
2. Tyre Plant
3. Mixing Plant
4. PCTR Plant

Production in Kottayam Plant

1. Automotive Inner Tube

2. Automobile Tyre
3. Retarding and repair material
4. Flap
5. Bladder

Products at Kottayam plant

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Automotive tyres, tubes, conventional tread rubber, pre-cured tread rubber, repair materials,
vulcanizing solution, flap, bladder, curing bags and solid tyre.

International Certifications for Kottayam Plant

 ISO9001:2000
 ISO14001:1996
 ISO TS:16949
 CQC

KOTTAYAM PLANT-FACTS AND FIGURES

Built up area - 6 Lakh sq.feet

Management staff - 252

Regular Work Men - 1115

Casual Work Men - 399

Total finished goods production - 3400 MT/month

Mixed stock sent to other unit - 7000 MT/month

Tyre production - 52000 tyres/month

Tubes, envelope and curing bags total production - 263000/month

Flap production - 82000/month

Tread rubber production (conventional) - 160 MT/month

PCTR production - 330 tonnes/month

Repair materials - 83 tonnes/month

Vulcanising solution - 32500 litres/month

ORGANISATION CHART OF MRF CORPORATE OFFICE

16 Board of Directors
 Chairman & Managing
Director

Joint Managing Director

Director Marketing

Whole time Director

Director Accounts

Director Engineering

Director Material &

Export Division Director Research &
Development

Director Manufacturing

Manufacturing Units

Thiruvattiyur Kottayam Goa Arakonam Medak Pondicherry

Employee details

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 DEPARTMENTS

MRF Ltd. gives an insight about the functioning of the departments. Each department is headed by
the General Manager who possesses expertise, knowledge in the area under his supervision.

The various departments at MRF Kottayam are;

 Production Department
 Production Planning Department
 Quality Assurance Department
 Technical Engineering Department
 Plant Purchase Department
 Raw materials Store Department
 Shipping (Dispatch) Department
 Industrial Engineering Department
 Safety Department
 Security Department
 Human Resource Department
 Finance and Accounts Department
PRODUCTION DEPARTMENT

In the most of the organisation production is the primary function. Production is simply means that
the raw materials are converted into finished products. Hence all other functions are support
functions. In Kottayam MRF unit production is carried out in 4 plants. They are;

 Tube plant
 Tyre plant
 Mixing plant
 PCTR plant (Produced Tread Rubber Production)

The following are the main functions of the production department;

1. Planning for production process

In each month they prepared a monthly plan about the production in a plant. Based on the
monthly plan given by the central planning, plant planning department will prepare a simulation plan
by dividing the month in to 3 segments of 10 days each. The simulation plan given by plant planning
for the month is taken as a guideline and each plant plans the production for each process. In the

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planning process they will considered the availability of raw materials. Small changes are made in
the simulation plan to reduce the number of sizes running at a time and also to reduce the number
of size change-over with the objective of improving production efficiency.

2. Material order (indent) or receipt

The daily requirements of raw materials are calculated at each plant after considering the available
inventory and the scheduled production for the next day. Raw material order is prepared by the Raw
material Store. The Raw material Store makes arrangements to deliver the ordered materials at the
plant. The receipts of materials are acknowledged to the Raw material Stores by production by
signing all the copies of the transfer/issue certificates. In case of in-process materials indent is given
in advance (1 to 3 days advance) to the concerned plants which produce that material. Raw
materials Store keep all the records of the raw material purchased and delivered and also control
and maintain the raw materials in the plant.

3. Processing

Processing is carried out as per the technical specification BSP (Basic Standard Practice), and the
work instruction of the respective department. If the production process is start only after satisfying
the standard qualifications of raw materials. Once the process is stabilised, the process parameters
are checked and recorded. If any parameter is not confirming to the specified limits, then necessary
correction is made and then production process is continued.

4. Product identification and traceability

The objective of proper identification and traceability is to prevent mix-up of products and to ensure
traceability of products at various stages. The primary responsibility to ensure this lies with the
production. This applies to raw materials, in-process materials and finished goods.

There is specific way to identify each material at each stage. For example, in the case of extruded
tubes, details like size, month code, year code, plant code, date of extrusion, extruder operator
code, and ‘Made from imported butyl’ are printed.

Traceability is ensured in different ways. For example, while extruding treads, the details of stock
(like stock code, date and shift of mixing, batch numbers) used for extruding those treads are
entered in the traceability register.

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5. Inspection

The activity of inspection covers raw materials, process parameters, in-process materials and
finished goods. Inspection is done to ensure that the materials, equipment and storage area are free
from any contamination. Proper identification of the materials, FIFO (First in First Out), ageing
(minimum and maximum), and test status (whether the material is tested and okayed or is pending
for test or is it rejected after testing) are checked. Dimension checks are done during in-process
operations. Visual checking is done on in-process materials for defects like cured lumps, air traps,
wrinkles, improper cutting, improper splicing etc. Process parameters like temperature, pressure,
water flow, etc. are also checked. Visual inspection of finished product is carried out by production.

6. Control of non-confirming products

During processing, if any non-conformance is noticed in the product, it is held with a NCM (Non
conforming Material) tag, which is filled up in duplicate with details like the material that has been
held, size/code, defect, quantity held, and the location where the material is kept. It has separate
space for writing down the disposal and also the disposal follow up.

The red copy is tied to the non conforming material and the white copy is given to the Production
Supervisor who in-turn gives it to technical department for disposal. The disposal for the non
conforming product is given by the Technical Department (within 48 hours in normal cases) and this
is written on the red copy which is attached to the material.

7. Corrective and preventive action

Corrective action: - When a non conformity is noticed either in process or product immediate
corrective action is taken to rectify the defect, so that the process or product is not affected any
mistakes.

Preventive action: - Recurring non conformities which are noticed in process by production, quality,
technical or engineering are taken up for discussion in the weekly Quality Assurance meeting to
initiate preventive action in consultation with the concerned departments. In case of occurrence of
non conforming process or product due to operational lapse, the concerned people are trained. In
other cases, the proposed preventive action is recorded in the minutes of the meeting and the
responsibility of implementing it is assigned to the concerned departmental person as decided in the
meeting. This is followed up in the subsequent meeting and reviewed for the effectiveness. If the

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preventive action calls for a change in procedure/work instructions, this is discussed in the weekly
Quality Assurance meeting and a joint decision is taken by the department heads.

Structure of Production Department

PLANT PRODUCTION MANAGER

MANAGER PRODUCTION

ASSISTANT ASSISTANT ASSISTANT ASSISTANT

MANAGER (TUBE MANAGER (TYRE MANAGER MANAGER (PCTR
PLANT) PLANT) (MIXING PLANT) PLANT)

SUPERVISORS SUPERVISORS SUPERVISORS SUPERVISORS

WORKMEN WORKMEN WORKMEN WORKMEN

PRODUCTION PROCESS

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Production is the primary function of the company and hence all other functions are support
functions. In Kottayam MRF unit production is carried out in 4 plants.

Plant 1: Tube Plant

Assistant Manager of production in plant 1(Tube plant) is in-charge of the whole tube plant. He is
entrusted with the responsibility of formulating plans for manufacturing tubes, co-ordinating the
manufacturing activities in the plant and facilitating the smooth manufacturing of the product.

Production process in Tube Plant

Artificial rubber called butyl rubber is used for manufacturing of tubes. It is mixed with carbon black
and chemicals, and then extruded in various sizes. After sufficient cooling it is sent for pre-cutting to
the required length, value fixing and splicing. Then it is moved to freezing table for cooling the splice
joined and is shaped on forming ring to the required size. Then it is taken and kept inside tube curing
presses for vulcanization. After the set time the tube is unloaded from the press and sent for
inspection. Then the tubes are deflated using vacuum and tube core is inserted. These sizes are
segregated and packed as per standards.

Plant 2:-Tyre Plant

Assistant Manager of production in plant 2 (Tyre Plant) exercises control over the entire plant. He is
responsible over the attainment of maximum productivity and in ensuring that the profitability is as
per the production schedule laid. Here various types of tyres are manufactured basically for Trucks,
Tractors and passenger cars.

Production process in tyre plant

Grey fabric is passed through calendaring machine for coating both sides with rubber. From there it
goes to a machine called Fabric Cutter for cutting to different lengths as per specifications. Steel
wires are passed through bead extruder for coating with rubber and wounded on specific wheels as
per specifications. On tyre building machine, green tyres are made using calendared fabric, bead,
tread etc. Green tyres are vulcanized in tyre curing presses by using steam heated moulds. After this
the tyres are inflated to retain its properties followed by trimming, inspection and dispatching.

22
 Green Fabric Calendaring Cutting Bead Making

Inflation Vulcanization Curing Tyre Building

Trimming Inspection Despatch

Plant 3:-Mixing Plant

The Assistant Manager of production in Plant 3 is in charge of the Mixing Plant. He is the responsible
person for any process that done in the Mixing Plant.

Production process in Mixing Plant

Rubber mixing Dump mill Cooling Metal skids

Ordinary rubbers is mixed with the Carbon Black, chemicals and rubber process oils in the specific
qualities in rubber mixing equipment called Ban bury. From there it is dumped into the dump mill
and passed through batch of tanks in sheet form for cooling and stored on metal skids. Samples from
each batch are tested and the batch is certified for use. This compound rubber is sent to tyre and
PCTR plant, Tyre plant and other units of MRF.

Plant 4:-PCTR Plant

Assistant Manager of production in plant 4 controls and facilitates the smooth manufacturing of its
profits.

Production process in PCTR plant

Compound Rubber Extruder Cooling Leaf Trucks

23
 Packaging Inspection Trimming Vulcanisation

Pre-cured tread rubber is used for re-trading of tyres. Compound rubber is mixed in mixing mills and
extruded to the required size using extruders and passed through conveyors for cooling. These slugs
are stored in leaf trucks for ageing. From there, it goes for the vulcanization in curing presses. After
curing excess flash materials are trimmed off and go for inspection. Then it is sent to the stretch-
wrapping machine for packing.

Production in Kottayam plant

1. Automotive inner tube:- this component is kept inside the tyre and which when inflated
centers strength and impacts profile to the tyre. The material used for its production is butyl
rubber because of its capability to retain air inside for a long time.
2. Automobile tyre:- this is the basement on which the whole super structure of automobile
rests. Here only conventional or bias tyres of passenger, light trucks, trucks and farm
equipments are manufactured.
3. Re-treading materials:- both conventional and Pre-Cured Tread Rubber (PCTR) and
manufactured here. While the conventional tyre requirements a longer curing time in the
case of PCTR the already moulded bride profile is kept on the top of worn out tyre and
pressurized with the intermediary of steam.
4. Flap:- This is kept in between tube and the tyre. This serves as a protector health for the
tube from the external changes of the tyre and also as insulation medium, which filters the
passage of the heat from the tyre to the tube. This is generally used for bigger tyres.

24
 HUMAN RESOURCE DEPARTMENT

Organisation structure of the HR Department

Plant Human Resource

Manager

Manager Human Resources

Deputy
Manager
Training

Assistant
Manager
Welfare

Security
Officer

Family
Welfare Co-
ordinator

Canteen

Time Office

25
The human resource development is known as the heart of an organization. It performs a number of
activities concerned with the employees of their organization. It interacts with other departments to
ensure effective running of the company. HR department consist of five staffs, one HR Manager, one
Training Manager, one Welfare Officer, and two Time Office Staffs.

The functions of the Human Resource Development include;

Any employee newly recruited will be exposed to the following areas;

 Introduction about the company

 Evolution of the concept of quality and its relevance to the contemporary industrial
production
 Safety
 External competitive environment and organisational culture
 Factory discipline
 Basic process flow in the plant in which they are placed

The following are the various activities being undertaken in HR Department

 Recruitment and selection of employees &General Administration

 Performance Appraisal
 Industrial Relations and Labour Management
 Training
 Contract services

Recruitment, Selection, Placement, Induction and Orientation

In the case of management staff, the functions of recruitment, selection, and placement is done by
corporate HR department. Induction and Orientation is given by plant HR. This is to align the
objectives and goals of the individual with that of the company, so that the synergy produces
benefits to the company as well as to the individual.

In the case of workmen, selection is done by plant HR department through a written test followed by
an interview. Then they are given induction and orientation before being sent to the plant for on the
job training. Induction and orientation for workmen is given for one day in which they are given
inputs on the following;

26
Workers are selected at 100% merit basis. Experience is considered as an additional qualification.
MRF provides the tradition of selecting the relatives of the existing employees wherever a vacancy
arises provided the relative is fit and suitable for the job.

 Application Blank
 Antecedent Verification
 Selection List
 Physical Examination
 Selection Interview
 Appointment

Training

Training is provided to employees who will help to improve performance, skill and knowledge and
will result in larger outcome and increased efficiency. In MRF training is a continuous process.
Training is provided to improve-knowledge, skill and behaviour.

Conceptual training is provided for improving the knowledge. Once taught these are implemented.

Quality training us also provided to teach about importance of quality. Several activities like
brainstorming sessions were used for this.

Safety training is provided to employees to get an idea about safety measures to be followed in
order to reduce unfavourable situation and to reduce wastage.

Usually on the job training is used to train workers and supervisors along with classroom training.

Initially for new employees conceptual, quality and safety training are given to make them aware
about the nature of work. This training is given for Three months (classroom). For the first six month
after initial training (classroom) the employee will be treated as trainee. Then on the job training is
given. In this training the senior workers while working give guidance about the way of performing
under the supervision of company supervisors. After the completion of six months as trainees they
are treated as apprentices for the next sixteen months. Then the next six months they will be on
probation. After successful completion of probation, employees are confirmed.

27
Mode of Training

Training is given to improve the facts of human personality namely Knowledge, Skill, Behaviour.

 Knowledge Based Training: - This training comprises of a training process known as

conceptual training. In this method, the employees are taught that they are implemented in
the organisation so as to improve the proper functioning of an organisation.
 Skill Based Training: - This type of training includes mainly technical training.
 On the Job Training: - this training is usually meant for the men at work place as well as
supervisors. This includes activities, Assignments, Operation, and Machinery.
 Off the job Training: - This type of training is usually given to all employees from General
Manager to Workmen.
Welfare

Labour welfare is the statutory lode controlled by the Factories Act for the benefits of the employees
within the existing industrial system, working and sometimes living and cultural conditions of the
employees beyond that which is required by the law, keeping in par with the custom of the industry
and the conditions of the market.

Labour welfare the aims at providing the physical psychological and general well being of the
working population. Labour welfare is carried by the Welfare Officer. The Welfare Officer takes care
of the physical and general well being of the employees.

The following are the functions;

1. To maintain harmonious relations between the factory management and workers by

establishing contact and holding consultation.
2. To notice the grievance of the workers to the management and act as a Laison Officer
between the management and labour.
3. To study and understand the problems of labour at workplace in order to help the factory
management to shape and formulate labour policies. And to interpret the policies to the
workers in their language.
4. To help the factory management to ask questions relating to the training of new workers,
Apprentices, Supervisors and control of notice board and information bulletins to further the
education of workers and to encourage their attendance at technical institutes.

28
 5. To advice on provision for welfare facilities such as housing facilities, food stuff, recreational
facilities etc.
6. To promote the relation between the concerned departments of the factory and workers
this will bring about efficient productivity. And to advice the workers to adapt or adjust
themselves to their working environment.
7. To watch industrial relations in a view by using his influence in an event of a dispute arising
between factory management and workers and help to bring down settlement by persuasive
efforts.

Medical insurance schemes

E.S.I and special medical insurance: - Employees are covered under various health schemes based
on their wage pattern. If it is below Rs: 7500 per month they are covered under employee’s state
insurance. If it is above Rs: 7500 per month they are put under a special insurance scheme (amount
equal to ESI will be given in cash).

Personnel accident insurance:-Work men are insured to a certain amount for accidents that may
occur while on duty and to a limited amount while off duty.

Hospitalisation insurance scheme: - Both workmen and spouse are eligible for Hospitalisation
insurance scheme.

Wages and salary administration

Wages of the workmen is fixed based on the long term agreement. It is paid to the workmen based
on the work done on each day as piece rate system. The work done on each day is recorded in work
sheets and it is routed through time office to the account section where wages to be paid are
calculated and paid. Wages to be paid for the casual workmen fixed and revised from time.

In case of management staff, salary is fixed by corporate HR. Plant HR co-ordinates the periodical
appraisal of performance which is the basis for salary revision. Salary for staff is paid on the basis of
attendance and this is monitored by the office which is functions of HR. Time office does the
functions of time keeping, attendance monitoring and up keep of leave records.

Allowance

The workmen are provided Dearness allowances, fringe benefits, Bonuses and other payments
according to the rules and regulations of the company. There are also overtime wages and
attendance bonuses. Overtime bonuses are given to people a person who normally works beyond

29
their time; such as lunch time, night shift, etc. Allowances include attendance bonuses. This is also
given to employees working outside factory premises, night shift etc.

Promotion

Promotion means shifting an employee to a position in the same hierarchy. This may be due to
seniority and performance. Promotion depends upon the parameters such as Seniority, Merit and
Suitability of the job etc. For some promotions a test is also done and an interview is also provided.

Industrial Relations and Labour Management.

The company has very good cordial industrial relations. The two trade unions of the company are

 MRF Employees Union(INTUC)

 MRF Employees Union(CITU)

The trade union consists of an organisation. They also have a level of hierarchy. The local leaders of
the trade unions are the Secretary, Treasurer, and a Convener. The external leader comprises of
President, Vice President and General Secretary.

The workmen category of MRF is controlled by a Long Term Agreement every three years.
Negotiations and Conciliation between Management and workmen are made over the table through
continued discussions. This is mainly organised by HR with the help of Industrial Engineers and other
departments involved.

30
 1.
2.
3.
4. ACCOUNTS DEPARTMENT

Plant Accounts Manager

Manager Assistant Assistant Manager Officer Officer

Manager Shipping Engineering
(Raw Engineerin Stores
Plant Purchase
Material Accounts
Stores)

Wages CostingOffic Casher

Officer er

Supervisor Supervisor Supervisor Supervisor

Supervisor
Material Handling Workmen

Supervisor

31
 ACCOUNTS DEPARTMENT

This is the one of the most important department of all the companies. Because it deals all the
financial transactions are controlled and managed by the Accounts Department. An efficient
Accounts Department helps the smooth running of the company. This department keeps account of
all the financial transactions of the company. The accounting period of MRF is from October 1 st of
one year to September 31 st of the next year. MRF has a fully computerised accounting system that
facilitates fast operations of its various functions. All the transactions of productions unit starting
from the issue of goods received to the final documentation is computerised. Funds are obtained for
capital structuring from both internal and external sources. The internal sources include capital
reserve, debentures, shareholders and the external sources include banks such as SBI, Canara Bank
etc. The strategy that the company has adopted is to go for credit transaction and payment will be
made with one month time.

Raw materials stores manager

Raw material stores manager is related with the buying issue of raw materials that for using raw
materials. He evaluates and takes decision about raw materials that is transferred to production and
mixing unit. He has the main duty of testing and Okaying of raw materials. The procurement of raw
materials is done by raw materials stores based on the raw materials required as computed by the
planning department.

Engineering stores department

All the engineering items are stored and issued by the engineering stores.

Assistant manager engineering stores

Manager engineering stores arranges machinery and manpower requirements or the unit’s. He
makes decision about plant layout designing, modification and flowchart etc.

Offices shipping

The storage dispatch of the finished goods is carried out by the shipping department. Finished goods
are sending to the depots and from there to the nationwide dealer’s networks .For the overseers

32
marketing the finished products are sent to exports go down and from there to various destinations
all over the world.

Shipping Officer

His duty to transferring of finished goods and raw materials to the distant office and to another
plant. He engages Lorries for transportation of goods as per the agreement financial budget. He
takes the about the sales tax and other relevant information to the production department. He
checks various allowance and bonus paid to the employees.

Engineering purchases department

This department does purchase of the engineering items. The personal from the engineering
department identify the various items and based on which purchase made. The items purchased are
rooted to engineering Stores Officer engineering purchase reports to the unit.

Source of finance

 Shareholders fund
 Share capital
 Reserves and surplus
 Loan fund

Application of finance

Investments

Current asset

Lartment at the plant level

 Financial accounts
 Cost accounts
 Wages and salaries
 Sales tax

Financial accounts

This branch deals with all types of cash payments and receipts. This will include payment for
engineering and raw material purchase, petty cash payments, operation and reconciliation of bank
accounts, payment to the government in the form of taxes and levies, payment of PF, payment of

33
Loan outstanding, payments in lieu of travel bills of employees, canteen expenses, payment to
contractors, payment of leave travel allowance, medical re-imbursement etc. Cash receipts in the
case of scrap sales and any other receipt will also come under this branch of accounts.

Cost accounts

This branch deals with forecasting, budgeting, analysing and reporting the income and the
expenditure of the company. The budget for the expenditure is prepared by using standard costing
principles and it is compared with the actual expenditure. Any variation from the budget (whether
positive or negative) is analysed to find the exact reason and it is reported to the top management.

Wages and salary

Computation of wages and salaries are done by this section of accounts department. Wages of
workmen are fixed in the long term agreement and is calculated on a daily basis depending on
various factors like grade, number of hours worked, the output achieved etc.

Sales Tax

This section handles all matters related to sales tax. A monthly return for sales tax is filed on behalf
of sales depots. VAT (Value Added Tax) system has been introduced and all matters related to this
are also looked after by this branch of accounts. “C Forms” are issued for purchases from outside the
state and “F Forms” are issued for receipt of goods from depots.

Financial Performance

Two interim dividends of 30% each for the year ended 30 th September, 2005 were declared by the
Board of Directors on 21-07-2005 and on 25-10-2005. The Directors now recommend to the Annual
General Meeting the declaration of final dividend of 140% for the year ended 30-09-2005. With this,
the total dividend for the entire year works out to 200%. The total amount of dividends aggregates
to Rs 8.48 Crores. The directors recommend that after making provision for taxation and proposed
Dividend, the amount of Rs 30.64 Crores be transferred to General Reserve. With this, the
Company’s Reserves and surplus stand at Rs. 749.81 Crore

34
 5. QUALITY ASSURANCE DEPARTMENT

Structure of Quality Assurance Department

Manager Quality Assurance

Quality Assurance Quality Assurance Quality Quality Assurance

in-charg in-charge Assurance in- in-charge
charge
(tube plant) (tyre plant) (PCTR plant)
(mixing plant)

Supervisor Supervisor Supervisor Supervisor

Operators Operators Operators

It deals with quality checking and inspecting, defective analysis, godown inspection, and defective
analysis. Quality is considered as the most effective tool to improve productivity, to achieve cost
effectiveness, to improve profitability and market share and to remain competitive in the global
market. In the business environment of today, quality impacts not only products and services but
also many other relevant entities such as process, systems, people and organisation.

Quality of design and quality of manufacture

A low level of quality can be caused by weakness either in the design of the product, or in its
manufacture. It is therefore appropriate to distinguish between quality of design and quality of
manufacture.

35
Two products which have the same use but which are designed in different ways can be of different
quality of design. There is then a difference in their inherent ability to fulfil the intended use. Quality
of design is evident in the specifications to which the product will be manufactured

A product may confirm in varying degrees to the specification. These varying degrees of confirmation
to the specification will lead to varying degrees of quality of manufacture.

.Functions of Quality Assurance Department

Quality Assurance Department has the primary aim of customer satisfaction. Hence its primary duty
is to ensure that any customer complaint (which is actually customer feedback) should be taken
seriously and it should be communicated to all concerned authority. Problem solving tools are
employed to ensure that the problem is solved and error proofing methods are adopted to ensure
that such problems don’t occur again.

The quality system requirements of the customers are collected and all efforts are taken to ensure
that the requirements are met. This is done be employing statistical process control techniques and
by training the operators.

The next function is to improve the profitability of the company by reducing defects and waste
generation. This is done by initiating projects for waste reduction and forming task forces for close
follow up. Specific targets are fixed in each area for waste reduction and quality improvement and it
is done in co-ordination with all other connected departments.

The main function of quality assurance department is process audit and final product inspection.
This will include monitoring the inspection status of incoming materials, in-process materials,
process parameters and finished product inspection. Ensuring identification and traceability of all
materials is also the function of Quality Assurance.

Each process and product has specifications and tolerance which are given by technical department.
A document called Basic Standard Practice is also available which says how the process is to be
carried out, what are the ‘do’s and ‘don’ts of each process etc. Work instructions are made available
which gives the specific activities to be performed while carrying out the process.

The performance of the products (first quality yield, scrap, seconds and repair level) are recorded
and monitored on a daily basis so that any abnormal deviation can be easily detected and attacked.
Quality Assurance co-ordinates the removal of scrapped items so that the exact data can be

36
obtained on the reasons for the scrap and the exact quantity of material scrapped. These data are
used to find out the root cause for the generation of scrap, the various factors that contribute to
varying levels of scrap and the cost to the company due to poor quality.

Quality Assurance also initiates studies for implementing new systems and procedures on the
principles of continuous improvement. FMEA (Failure Mode Effect Analysis) is carried out and
control plan is also prepared to ensure that the causes of failure are avoided before they happen.
Educating workmen on quality standards and the consequences of not following quality norms is
also done.

Whenever a tool change (tyre/tube/flap/bladder/PCTR mould change or tyre building drum change)
is done, the relevant parameters are checked by Quality Assurance and certification is done before
commencing production. In such a case, if it involves time change (curing time change when mould is
changed) or media change (changing from steam cure to air cure and vice versa in case of tube
curing) such parameters are also checked and certified.

Tube plant

Certain categories of tubes require a secondary inspection by QA (after an inspection by production

inspectors) to ensure that no defective tube goes to the customer. They are tubes sent to Original
Equipment customers, tubes used for off The Road tyres, radial, defence, project tubes, tubes for
wheel test and road test. QA co-ordinates the inspection and despatch of such tubes.

All balances used for weighing oil, polymer and chemicals are checked with standard weights. Green
tube weights are checked at random to find out whether it is operating at the specified level. If it
operates above the specified level, then the company looses since a higher than required amount of
material is going in to the product and if the weight operates at the lower level, it can affect the
quality of the product.

Tyre plant and PCTR plant

Market leader products follow up and performance monitoring is done to closely follow its
improvements. Weekly follow-up of dirty moulds is done for tyre, PCTR and flap moulds. It is
communicated to all concerned and is followed up so that dirty moulds are removed from
production line for cleaning.

37
Bladder life analysis is done to find out the optimum number of cures that a particular size of
bladder will give. This will be helpful in getting the maximum utilisation of the bladder with minimum
of tyre scrap. The analysis will also point out any abnormal phenomenon so that the reason for it can
be probed and possible solutions found out.

Whenever a new process or product is introduced, the first 100 tyres are followed up and the
performance is recorded. This helps us to decide whether any change has to be introduced, any
improvements to be made or whether the same conditions can be continued.

Mixing plant

Raw material godown inspection is done and reports are published. Any follow up action to be
initiated in relation with the observations in RM godown is co-ordinated by QA. Carbon godown
inspection and audit is done to check for correct carbon usage, FIFO (First In-First Out method), and
OK status. All chemical weighing balances are checked using standard weights. Oil temperature is
also checked.

38
 6. TECHNICAL DEPARTMENT

Manager Plant Technical

Technical In- Technical In- Technical In- Technical In-

charge (Tube charge (Tyre charge (Mixing charge (PCTR

Supervisor Supervisor Supervisor Supervisor

Operators Operators Operators Operators

39
 TECHNICAL DEPARTMENT

Technical Department at the corporate level carries out R&D activities and the results of those
activities are transferred to the plants. Some of the activities carried out at corporate technical are
new product development, new compound development, designing and inspection of new moulds,
selection and evaluation of new and alternative sources, selection and evaluation of alternative
materials, finished product testing and analysis, heat engineering and assisting plants in problem
solving.

Raw material Testing

All raw materials are tested and released if they confirm to the specifications. When the material is
received, raw material stores personnel arrange for collection of samples from the received
materials as per sampling plan. The sample is given to raw material testing lab along with sample
transfer note/visual inspection report.

Raw materials are tested as per BSP (Basic Standard Practice), standard test procedure and are
compared with the specification issued by corporate technical. If the material confirms to the
specification, the material is released for production. If the material does not confirm to
specification, more samples are tested and released if it is OK. If any of the re-tested samples are not
OK, then the samples are sent to corporate lab and the material is accepted or rejected based on
corporate advice. If the material is rejected, then raw material rejection note is prepared and the
material is returned to the supplier by raw material stores.

Positive recall

This is a process in which raw material/work-in –process materials are released for production
without testing in case of urgency. In such cases, head-plant technical will issue letters to stores,
production and quality assurance with all relevant details. The wonk-in-process materials and
finished goods produced using that material will be kept properly identified at all stages till the
material is tested and disposals given. Compounds mixed or other units can be despatched even
before testing is done provided the testing can be completed and result communicated to the
receiving plant before the material is unloaded.

40
In-process material testing

In-process materials are tested by technical as per the plan to check whether any deviation from the
specification has happened either in the material used or in the process.

Finished product testing

Finished product testing is done both in the plant and at corporate technical departments. This is
done to ensure that the product produced confirms to the required standards. In case of tyres, ply
adhesion, mounted tyre dimension (after mounting the tyre on the rim), and cut tyre analysis are
done in the plant. For PCTR and Flap, cured dimensions and weight are checked. De-mattia and
tensile tests are done on cured tubes.

Issue of specifications

Specifications are issued from corporate technical and this is used as a guideline to issue plant
specifications. Based on the corporate specification, fine tuning is done to adopt the specification to
the plant processing conditions by trial and error method and from experience.

Process control

Process control is effected by surveillance checks or tests conducted regularly. The data generated
during tests and surveillance audits are used to control the process. Changes are made if required in
the specifications to achieve processability targets, the changes are documented through plant
change letters.

If there is any problem, the process/product will be analysed for variations in raw material, or
process conditions. Any deviations found will be corrected or alternative source of raw material will
be tried. Process will be repeated to check whether it is OK.

New product introduction

Whenever a new product is introduced, a TPOR (Technical Programme Opening Report) is received
from corporate technical along with corporate specification, project schedule and new size
production plan. Based on the TPOR, a micro plan will be prepared by Head-plant technical and it
will be approved by the originator of TPOR. This is then given to the concerned technical in-charge
who prepares the activity plan. Plant specification is generated based on the corporate specification.
Trial production is scheduled and products are manufactured under follow up.

41
Mixing of Cements, Lubricants and Paints

Mixing of Cements, Lubricants and Paints are done in cement house under the direct supervision of
technical department. Simulation plan is received from plant planning for PCTR solution and
vulcanising solution. Monthly requirement of cements and paints required for consumption within
tyre plant is calculated from monthly simulation plan.

Monthly stock requirements are calculated from the simulation plan and the quantity of stock
required is communicated to mixing plant. Raw material indent is given to raw material store.
Mixing, testing and releasing of cements, paints and lubricants are done as per the documented
procedure. If properties are OK, then the material is released. If the properties are not OK, then the
non conforming material procedure is followed to dispose off the material.

Finished product re-classification

Finished products which do not confirm to fist quality norms are kept separately and are jointly
inspected by production, technical and Quality Assurance. Based on joint decision, the material is
either sent as seconds, repaired or scrapped.

Tool inspection

Tool inspection means inspection of any mould (Tyre, Tube, PCTR, Flap, Bladder, Envelope, Curing
bag etc.) or tyre building drum. For new size moulds, plant technical does the mould inspection
based on the drawing. After inspecting the new size moulds, plant technical will inform engineering
to OK or reject the moulds. In case of non-conformities, plant technical is authorised to release the
moulds conditionally based on joint inspection with production, and quality assurance, provided
corporate approval is received for the production of a definite quantity or for a definite period. In
case of regular size mould/drums/bead rings/PI rims, plant technical does the inspection based on
inspection certificate or test report.

Tool change

Whenever there is a tool change (mould changes in case of tyre, tube, PCTR, flap, bladder, air bag
and envelope) the concerned specification is given by plant technical department. In case of a new
size tool, it has to be Okayed by technical before being put in production.

Design change process

Design change is first introduced through a TPOR (Technical Programme Opening Report)or a
TA(Technical Authorisation). The necessary specification, formulation, drawing and tools are

42
arranged. A micro plan is prepared whenever TPOR is organised. The micro plan is approved by the
originator of TPOR.

Necessary specifications are issued and proper communication is given to production and Quality
Assurance through trial intimation letter. All the relevant processing parameters observed while the
project is being done will be compiled and sent to the originator of the TPOR. The final design
review, verification and validation will be done by the originator of TPOR.

Heat engineering

Heat engineering is a process by which we arrive at the curing specifications and fix cure time.
Validation of cure time is also done periodically to find out whether any variation has occurred
compound properties which necessitates a change in cure time. Blow point study and thermocouple
study are normally used as tools in heat engineering.

Control of non-conforming product

It is the responsibility of technical department to dispose of the non-conforming materials in a

suitable manner. Non-conforming materials are tied with a red tag (Non-conforming material tag)
which contains all the relevant details like the MRF code of the held material, quantity, reason for
holing, date and shift of production, date and shift of holding etc.

Technical in-charge reviews the non-conformance and takes a decision on the method of disposal
and this is recorded on the conforming material tag. The disposal is then followed up by production.

43
 7. ENGINEERING DEPARTMENT

Structure of engineering department

Plant engineering Manager

Manager, Electrical Civil Engineer Manager, Mechanical

maintenance plant Maintenance Plant
(Tube, Tyre, Mixing, (Tube, Tyre, Mixing,
PCTR) PCTR)

Supervisors Instrumentation Engineer Supervisors

Electricians Mechanics

44
 8. ENGINEERING DEPARTMENT

The department comprises of engineers, mechanics, electricians and technicians. The mechanical,
electrical instrumentations, civil and environmental engineering wings come under this department.
The main functions are new machinery lay-out preparation, erection and commissioning of new
machinery, preventive maintenance, breakdown maintenance, condition monitoring and over
hauling of machinery and other related equipments.

Erection, commissioning, operation and maintenance of utility items like generator, boilers,
compressors, pumps, freezer lines and cooling towers and maintenance of material handling systems
like lift, hoist, chain block, gantry and forklifts are done by engineering. The maintenance of
equipments at pump house and training centres are also done.

Mechanical Maintenance

Preventive maintenance: - All equipments that need preventive maintenance are listed out. It is
ensured that equipment history and manuals are available for all the machines. A preventive
maintenance schedule is prepared after a careful analysis of break downs in the machines and based
on the personal experience of the maintenance personnel. The annual maintenances schedule thus
prepared is divided into weekly schedules.

Preventive maintenance schedule for the particular week is taken and the necessary materials, tools,
manpower and spares are arranged. Necessary clearances are obtained from planning and
production (for production equipments) and the machine is released for maintenance. The
scheduled maintenance activities are carried out based on work instructions and experience. Then
the machine is checked and handed over to production.

Based on the number and nature of breakdowns in each machine during the year, the preventive
maintenance schedule is reviewed and a new schedule is prepared for the next year.

Breakdown maintenance: - the defective machinery is identified either by production or by

engineering and a maintenance request is generated. In case of production detecting the flaw,
production raises the maintenance request and in the case of engineering detecting the flaw,
engineering raises the maintenance request and arranges for the tools, maintenance personnel and
spare parts. The machine is then released for maintenance. The required maintenance jobs are
carried out and the machine is thoroughly checked. If the machine is OK, then it is handed over to

45
production. Otherwise necessary corrections are again done. Every month, down time analysis is
done and permanent corrective actions are initiated in case of recurring failures.

Mean Time between Failure (MTBF) and Mean Time To Repair are the measures adopted to track
the improvement.

Other jobs (mechanical)

A part from preventive and break down maintenance the following jobs are done by mechanical
engineering.

 Condition monitoring and planning for preventive maintenance.

 Vibration analysis, wear derbies analysis, clearance recording, temperature monitoring etc.
for machinery.
 Carrying out activities for the compliance of quality parameters concerning equipment
functions.
 Planning and carrying out opportunity maintenance.
 Energy conservation activities.
 Generating purchase requisition of engineering materials, inviting quotation, approval of
quotation, audit local and imported spares, procurement, inspection and approval. Making
drawings of spare parts and finalising specifications whenever required.
 Prepare maintenance budget and work on cost optimisation.
 Vendor development to carry out maintenance related jobs.
 Maintain equipment data, machine history, breakdown analyses, maintenance records and
material procurement data.
 Job allotment and bills settlement of contract workmen engaged in engineering jobs.
 Issuing safety permits and supervision hot work, working at height, work at a confined
space, excavation and usage of portable electrical equipments.
 Erection, commissioning and maintenance of storage and dispensing facilities for process oil,
furnace oil, diesel and solvent.
 Maintenance of facilities for filtering, purification and storage of drinking water.

Tool inspection (mechanical):- Whenever moulds, PI rims, bead rings, building drums etc are
received, engineering stores will intimate engineering department. For new sizes of moulds,
engineering informs Plant Technical Department for branding checks and the branding are checked
based on the drawings. In case of regular sizes, inspection is done based on inspection certificates or
test report and is okayed or rejected as the case may be.

46
Tool (Mould) change

Whenever a mould change is required, planning gives a request to production and in-turn
production gives the request to engineering. Engineering carries out the mould change operation.
The first production inspection is done and the mould change is certified by engineering, production
and quality assurance before the mould is released for production. If it is not OK, engineering will do
the necessary corrections and submit it for certification again. Whenever the mould becomes dirty
and needs cleaning, quality assurance intimates production and production intimates engineering.
Then the mould is removed and sand blasted (cleaned) before being put in to production again.
Before removing the mould form the press, last tyre inspection is done to check whether there is any
damage to the mould. If there is any problem, it is corrected before being put back in to production
line. Any repair carried out on the mould is recorded in the mould history card.

Change of tyre building drum also follows a similar procedure.

PCTR mould change is done by production workmen and any major problem is attended by
engineering. Flap mould and tube moulds are also changed by engineering by following similar
procedures.

While mould changes and drum changes are done by mechanical engineering, electrical settings like
time setting in tyre curing, light setting in case of tyre building drum etc are done by electrical.

Tool management

All moulds and drums will be identified and the master list will be maintained by mechanical
engineering department. Master list will contain identification number, size and quality. Drum and
mould will be stored in respective area. Preventive maintenance is carried out as per the Process
Module “Equipment Maintenance”- preventive. Finished product from the running mould will be
inspected by production\ QA for appearance. If appearance is bad, production will take up with
Engineering for clearing \ repair. Mould \Drum repair carried out is entered in the history card.

Boiler and allied systems

MRF Kottayam unit has two boilers of 15 tonnes per hour capacity and one boiler of 20 tonnes per
hour capacity. All the boilers come under the IBR (which means that they have to comply with Indian
Boiler Regulations). Hence any major work done on these boilers have to be done after getting
permission from the factories and boiler inspectorate.

47
The water that is sent in to the boiler has to be purified to avoid corrosion, pitting and scale
formation inside the boiler. The water is first sent in to a clarifier to remove colloidal impurity. Then
it is passed through a pressure filter for filtering any solid matter. It is then sent in to softener plant
to remove the hardness of water. Water is then sent to a deareator to remove the nascent oxygen.

The treated water sent in to the boiler is converted in to steam which is to be sent for heating
purposes. The steam produced is measured in Tones per Hour.

Electrical maintenance

MRF-Kottayam unit falls under the EHT(Extra High Tension) consumer category. All consumers who
use 66KV and above are included in this category. The incoming supply for our unit is 110KV.
Normally we get power from Pallom sub-station but we have a provision to get supply from Pala
sub-station also in case of emergency. The total connected load of our unit is roughly 30000HP. The
maximum demand is 10000KVA.

For backup power supply, we have 3 generators of 1000KVA each and one generator of 5000KVA
capacity.

Erection and commissioning of new machinery (Electrical)

In case of erection of new machinery, the following procedure is followed;

A scheme is prepared with input information from corporate electrical. The required load and
existing capacity is verified and viability or alternate sources are studied. Work schedule is prepared
by prospective contractors and submitted along with their quotation.

After verifying whether the contractor is verified to do the job, contractor is fixed and work order is
given to him. A schematic diagram as per the standards of electrical inspectorate is prepared. Then is
forwarded to electrical inspectorate and they in-turn scrutinise the proposal and intimate any
changes to be incorporated. When this is done, initial approval is obtained from electrical
inspectorate and work commences. After the election is over, electrical inspectorate is informed and
an inspection is done by them. If the conditions are satisfactory then a safety certificate is issued
which states that the system is safe for energisation. The machine is to be charged only after all
these formalities have been completed. All documents related to the above process have to be
maintained.

Any changes in the load requirement or usage should be promptly communicated to the electricity
board but does not require any sanction if the total load remains within the contract load. Otherwise

48
prior sanction has to be obtained. All protection relays should be tested and certificates maintained
every 2 years. Periodic calibration of energy meters, and yearly electrical inspection by Electricity
Board will be co-ordinated by electrical engineering.

Preventive maintenance (Electrical):- All equipments that needed preventive maintenance are listed
out. It is ensured that equipment history and manuals are available for all machines. A preventive
maintenance schedule is prepared after a careful analysis of break downs in the machine and based
on the personal experience of the maintenance personnel. The annual maintenance schedule thus
prepared is divided in to weekly schedules.

Preventive maintenance schedule for the particular week is taken and the necessary materials, tools,
manpower and spares are arranged. Necessary clearances are obtained from planning and
production (for production equipments) and the machine is released for maintenances. The
scheduled maintenance activities are carried out based on work instructions and experience. Then
the machine is checked and handed over to production.

Based on the number and nature of breakdowns in each machines during the year, the preventive
maintenance schedule is reviewed and a new schedule is prepared for the next year.

Breakdown maintenance (Electrical):- The defective machinery is identified either by production or

by engineering and a maintenance request is generated. In case of production detecting the flaw,
production raises the maintenance request and in the case of engineering detecting the flaw,
engineering raises the maintenance request and arranges for the tools, maintenance personnel and
spare parts. The machine is then released for maintenance. The required maintenance jobs are
carried out and the machine is thoroughly checked. If the machine is OK, then it is handed over to
production. Otherwise necessary corrections are again done. Every month, down time analyses is
done and permanent corrective actions are initiated in case of recurring failures.

Mean time between failure (MTBF) and Mean time to repair (MTTR) are the measures adopted to
track the improvement.

Instrumentation

A master list of all the instruments which have to be calibrated is prepared by instrumentation
engineering. All the instruments are given unique numbers so that it is easy to trace and track the
instruments for calibration. A software programme is prepared in which the equipment number,
description, last calibrated date, frequency of calibration etc. are fed. From the software, monthly
list of equipments to be calibrated is generated and the instruments are calibrated as per work

49
instructions and standard calibration procedures. Most of the instruments are calibrated in-house
while some of the instruments are calibrated by external agencies.

Calibration sticker is pasted on the instrument showing the date of calibration and the due date for
calibration. Calibration report is prepared for all calibrated instruments. Calibration certificate is
obtained for instruments that are calibrated by outside agencies. If any instrument shows an error or
deviation beyond acceptance level then the user is informed about it. The correction factor to be
applied is recorded and intimated.

All the balances weigh bridges are to be certified by government agencies before commissioning
(original verification) and re-verification is done every year. This is ensured by instrumentation.

Civil Engineering

Civil engineering department does the work of preparation of project proposals, drawing and
estimates as per requirements for construction and extension of new factory buildings, equipment
foundation, plant offices(aluminium partitions and false ceiling) construction of cable and pipe line
trenches, construction of roads, storm water drains and site development work (using mechanical
means).

Laisoning with government agencies and local bodies for getting approval of building plans and
permits is also the function of civil engineering. Projects are executed on item rate contracts.
Finalisation of contract rates and issue of work orders are done by civil engineering department.
Supervision and providing technical support are done along with the job of recording the work done,
taking measurements and check measuring contract bills.

Maintenance of all civil structures is the function of civil engineering. Periodic repair of concrete
floor, A/C sheet roofing and valley gutters, maintenance of plumping and sanitary fittings such as
toilets, washing facilities etc. de-silting of storm water drains, and annual re-painting of buildings
(white washing and colour washing) are the maintenance activities.

Work permits are issued to the workmen to ensure their safety. These are done after carefully
checking the conditions. The following permits are given- height permit for working at a height
above 3 meters, portable electrical equipment permit, confined area work permit, excavation permit
and hot work permit. Once the work permit is given, proper supervision is to be ensured.

Environmental Engineering

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This branch of engineering is mainly concerned with monitoring of factors which affect environment
(as a result of manufacturing activity) and finding ways by which they are minimised or eliminated.

Water pollution, air pollution and sound pollution are the main factors that come under the preview
of environmental engineering in the present context.

Water treatment: - Effluent water is sent into anaerobic digester (where it does not have any
contact with air). Here 85% to 90% of suspended solids settle down to form the sludge. The water
from which suspended solid are removed are then sent to an aerator and clarifier where 90% to 95%
of suspended solids are removed. This is then chlorinated and it is called treated water. Treated
water is used for roof cooling and for irrigation. 300 kilo litres of water are treated per day in this
process. Another 300 kilo litre of water is treated per day using a parallel process which is as follows-
effluents are sent to anaerobic digester where 85% to 90% of suspended solids settle down. Later it
is sent to SAFF (Submerged Aerated Fixed Film) tank where a bio film is developed on PVC media.
Diffusers provided below the media aerate the systems. This leads to a reduction of 90% to 95% of
suspended solids. It is then sent to a parallel plate separator tank where the suspended solids are
further removed. It is then chlorinated and used for roof cooling and irrigation.

A wet land is also created on a trial basis where the effluent water is aerated by the roof of a special
type of reed (plant) which degrades the organic matter and thus purifies water. The capacity is 20 to
25 Kilo litres of water per day.

Air Pollution

It is being monitored by engaging and outside agency. Particulate matter in air is measured and
compared against standards of permissible levels. To control air pollution they have provided their
ban buries used for mixing rubbers and chemicals, with big filters(pulse jet and shaker type) the
dust-laden air is passed through shaker type filters. The dust is trapped o n the bags and the clean air
is gone out. These bags are shaken with a leaver at periodic intervals is dislodged the dust from the
bags, the dust is collected in a hopper and discharged. In pulse jet system, the bags are cleaned by a
brief burst of compressed air at programmed intervals of time.

Sound Pollution

It is measured in terms of decibels and compared with the standards of permissible levels. This is
done at specified spots twice a year.

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 9. INDUSTRIAL ENGINEERING DEPARTMENT

Structure of Industrial Engineering Department

Plant Industrial Engineering

Manager

Industrial Engineer Assistant Manager Enterprise Resource

Planning Planning (ERP)

Supervisors

Workmen

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 10. INDUSTRIAL ENGINEERING DEPARTMENT

The main function of this department are standard fixation, plant layout modification and designing,
machinery and manpower requirement study, auditing of production calculation and pollution
control.

MAJOR ACTIVITIES

 Conducting studies for fixing Standards and Crew Strength in all areas.
 Negotiating with Unions for setting standards.
 Participating in discussions for settling labour disputes.
 Manpower requirement assessment.
 Factory Layout planning.
 Expansion Project Co-ordination.
 Resource Planning- Manpower, Machinery and Equipments.
 Design of Wages system and incentive monitoring.
 Long Term Agreement related works.
 Calculation of Chairman’s Awards.
 Calculation of Production Bonus.
 Preparation and publication of Management Information Systems (MIS) Reports.
 Special Studies like benefits and feasibility of outsourcing, relative merits and demerits of
different methods of manufacture etc.
 Computation of machine utilisation.
 ERP (Enterprise Resource Planning) Activities :- Maintenance of leased line connectivity
between factory and head office and other plants, maintenance of network connectivity in
all areas of the plant, administration of local e-mail service, maintenance of computers,
printers and other accessories.

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 EINGINEERING STORE

This is a place where the engineering spares, consumables and new equipments are received and
stored before being delivered to the user point. The minimum inventory level and re-order level are
specified for each material based on the frequency of requirement, availability, lead time to procure,
cost, storage capacity etc. the minimum inventory levels are checked and purchase requisition is
raised for the required items. The ordered materials are received at the gate by the security
personnel if it is accompanied by the purchase order.

‘Goods passed in/out’ stamp shall be put on the Delivery challan/Invoice during inward entry by the
security. When the materials arrive at stores the delivery challan/Invoice is checked for the ‘Goods
passed in/out’ stamp. Verification of documents is done to confirm whether the quantity mentioned
in the purchase order and the actual quantity mentioned in the delivery challan/invoice match. Then
the materials are unloaded in engineering store or at the respective plants where it is to be used.
Physical verification of the received material is also done, for quality and quantity.

The material is identified by GAE (Goods Arrival Entry) number. Information is passed on to purchase
department and vendor on Excess/Shortage/Rejection of any material with a copy to accounts
department. Excess material is sent back and shortage quality if any is procured forms the vendor.

In case of engineering materials, the concerned indenter is informed to take delivery of the material
after proper inspection. The inspection of moulds, drums, filler rings and rubber products are also
done by Engineering. GRN (Goods Received Note) is prepared if the material is accepted. Rejected
materials are sent back to the vendor on information from purchase with intimation to security.

The okayed material is kept in the storage area and is issued as and when required. Engineering
store is also does the job of sending materials to vendors/workshops for repair based on Engineering
indent. A copy of the requisition is sent to purchase for preparing work order and gate pass copy is
issued to security. Receipt of material after repair is cross-checked with DC (delivery Challan)/WO
(Work Order) copy/GP (Gate Pass) copy and entered in GP list and issued to indenter. All transfers to
other plants are based on Material Transfer Note from concerned areas. A copy of IPTM (Inter Plant
Transfer Memo) is sent to Accounts/Security department.

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 RAW MATERIAL STORES

Raw material stores will receive a copy of the raw material requirement for the month which is
prepared and sent by plant planning. This is also sent to central planning and central purchase by
plant planning. Based on the requirement, central purchase arranges for procurement of materials
and issues a delivery schedule to the plant. Delivery schedule is the schedule by which the supplier
will release the specified quantity of material at the specified dates to the plant.

Raw materials, consumables, fuel etc are received at the factory gate in line with the delivery
schedule and purchase orders. The documents are verified to ensure that the materials are from
approved sources and the correct quality as ordered is delivered.

Weighment of the load is done. GAE (Goods Arrival Entry) is made and the load is re-directed to the
unloading point through the security department. The unloading point is usually the raw material
goes down, but sometimes the materials are unloaded at the plants where it is consumed. In case of
fuel, oil etc. it is unloaded at the storage area.

At the unloading point, visual inspection is carried out and then the material are stored with proper
identification tags showings the primary status of the material (Hold \Pending for test). Each
material has a specified storage and it is placed in that storage area.

Sample transfer \visual inspection report is prepared and samples are collected for testing as per the
documented sampling plan. The sampled bag is identified and the sample is sent to technical
department for testing. GRN (Goods Received Note) is prepared at this point.

After testing the samples, Technical department informs the test result through the material
releases \ rejection\hold note printed at the bottom portion of the sample transfer\visual inspection
report. Based on the test result green colour sticker captioned “OK” is affixed if the material is OK,
Red colour sticker captioned “REJECTED” is affixed if the material is not fit for use and ORANGE
colour sticker captioned “HOLD” is affixed if it needs further tests to arrive at a concrete decision.

55
 11. SAFETY DEPARTMENT

Important terms and definitions

Accident: - Accident is an unintended, uneven occurrence resulted from and during the course of
work resulting in bodily injury or death of affected persons or damage to properties or both.

Safety: - Safety is the systematic way of eliminating the causes of accident. It is based on the
principle that does not happen and are caused. In other words, all accidents have causes and
elimination of these causes will eradicate the accidents and as well.

Unsafe Act: - An action, which may cause an accident to self or others or results in damage of
properties or both. Statistics reveals this to be 85% of total accident causes.

Unsafe Condition: - A situation, which may cause an accident to any one or result in property
damages or both. Statistics reveals this to be 15% of total accident Causes.

MRF has a well defined SAFETY AND HEALTH POLICY which is as follows.

It is the policy of our company that the SAFETY AND HEALTH of our employees shall be our FIRST
priority. It is the responsibility of everyone in this organisation, regardless of the position he
occupies, to ensure that everyone in the factory returns home to his beloved ones without any injury
today and every day.

We shall observe this policy not only in letter but also in spirit and offer “ACCIDENT FREE SAFE
PRODUCTION” for the benefit of one and all.

Implementation of this policy

At Kottayam plant, our General Manager is responsible to implement this policy at unit level. This
responsibility has been further re-delegated to Department Managers or Department-in-charges (at
Department level), Plant Managers or Plant-in-charges (at Plant level) and Shop floor Officers,
Supervisors or Assistants (at Shop floor).

Procedures and guidelines

56
Necessary procedures, Rules and Guidelines for the effective implementation of this policy, without
prejudice to the statutory requirements, are formulated by Chief Safety Officer and Plant Safety
Officer. They will also render necessary advice and assistance to all Management Staff in the
effective implementation of this policy at respective Sections, Plants, Departments and the Unit as
the whole.

PREVENTION (of Accidents)

I. Training
Training will alleviate ignorance on Safe/Standard work practices and will enhance Safety.
Training will include
 Induction Training on Basic Safety aspects
Induction training will cover general safety procedures, safety rules and other
guidelines. This will also cover the proneness of a factory atmosphere to accidents as
compared to outside world, general safe practices and safety precautions to be
followed on dangerous machines. Induction training will also brief on safety devices
on machines and personal protective equipment.
Safety officer will be the faculty for Induction Training (on Safety).
 On the job Training
Along with the points on specific activities related to the nature of work of the new
Employee, this training should cover aspects on applied safety related to the specific
machines and specific section. Shop Floor Officer/Supervisor will be the faculty for
this training.

II. Enforcement of Safety Rules and Guidelines

This is regarded as one of the most important area of Accident prevention. This is being
done by closely monitoring the activities of the subordinate staff or workmen in the
respective Sections, Plants or Departments to prevent any unsafe act or safety violation.
This responsibility has been assigned to the respective Shop Floor Supervisor or Officer (at
shop floor level), Plant Manager or Plant-in-charge (at plant level), Department Manager or
Department-in-charge (at Department level).
The tool used for this is Job Safety Instructions which has to be imparted to subordinate
before and during the course of work.
III. Safety Audit

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 Being done by Safety Officer or Chief Safety Officer (during his visit), gathers useful
information on Unsafe conditions, Unsafe acts and on the level of enforcement of Safety
Rules and Procedures which they immediately bring in to the attention of the respective
staff\Management staff for corrective action under intimation to Unit Chief. Plant Safety
Officer will also assist the staff\ Management staff in the corrective action, if required.
IV. Corrective and preventive action
Unsafe acts and unsafe conditions which are not rectified will be discussed in Safety
Committee Meeting. The decision of the meeting is regarded as final and binding on this
entire unit.
In addition a detailed presentation on the analysis of accident is made in this Meeting by
Safety Officer.
A total analysis of accidents of the previous month is carried out in Monthly Quality Meeting
also.
V. Safety Awareness Promotional Activities

Boards have been displayed at all conspicuous points. Safety promotional literatures are
being released to increase awareness among employee. Safety competitions are conducted
during Safety Week Celebrations.

SAFETY RULES AND GUIDELINES

1. General
 Every employee has to understand that he can do more for his own safety.
 Only qualified and experienced hands can be employed on a job.
 It is the responsibility of each employee of this organisation to ensure that the men
working under them follow relevant Safety Rules and guidelines.
 Instructions have to be clearly understood and to be clarified then and there.
 Employees have to use Personal Protective Equipment when and where required
inside the factory.
 Employees should not come for work after consuming liquor, drugs etc.
 Cautionary boards, sign boards etc., positioned in the factory have to be given due
recognition and adherence.
 Do not use compressed air for cleaning dress or body.
2. Fire Safety

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  Smoking is strictly banned within the Factory.
 Nobody shall tamper with any fire fighting equipment.
 Each employee has to know the properties of solvents that can cause fire and take
precautions as and how suggested.
 Follow the safe procedures to handle Gas cylinders.
 Use flashback arrestor for Gas cylinders.
 Do not use L.P.G cylinder for Gas cutting.
3. Electrical Safety
 Only authorised electrical personnel can attend electrical installations and
accessories.
 A responsible MRF Electrical engineer has to take responsibility for electrical works.
 All those who are employed in Electrical works have to use relevant Personal
Protective Equipments like Shoes, Gloves etc.
 Excavation permit has to be obtained for digging works as per work instruction
safety
 Extra care has to be taken while working below high tension lines.
 Ear thing and earth continuity of all equipment have to be ensure
 Only tested and certified equipment shall be used for work.
4. Working at Height
 Avail Safety Work Permit for working at Heights for all works above 02 meter height.
 Use Safety belt and other Personal Protective Equipments wherever necessary as
per the requirements of the Permit and Work instruction-Safety.
 Use crawling Boards, Guy rope, Safety Net etc. while working over Fragile Roofs.
 Do not throw objects from height.
 Use only good quality ladders while climbing up.
 Use Tower Ladders or scaffolding when ordinary ladders are not sufficient.
 Always entrust another man to hold a ladder from the bottom.
5. Major Works
 Use barricades and Cautionary Boards while carry out major maintenance works.
 Do not go below a lifted or hanging object.
 Do not take your body parts close to any unguarded moving machine.
 Before using any machine or equipment, please ensure that it is operable and free
from maintenances.
 Use only tested and certified lifts, hoists, lifting tackles and pressure vessels.

59
  Workmen should bring all unsafe condition and Acts immediately to the notice of
the supervisors.
6. Transport Safety
 Do not sleep below a stopped vehicle.
 Follow the speed limit within the compound.
 Use only well maintained vehicle inside the Factory.
 Only licensed drivers shall be permitted to drive a vehicle.
 Projected material from trucks should be given identification with red flags/lights.
7. Work Permits
 Safety Work Permit System has to be strictly followed wherever applicable as per
Work Instruction-Safety. The following works are graded as permitted jobs.
o Welding, Gas Cutting, Grinding and any other activity which can create spark
or fire.
o All works above 02 meters from floor level.
o Digging/Trench cutting works.
8. Accident Reporting and First Aid
 All accidents have to be reported to the immediate superior of the victim, who in
turn will report it to all others including Unit chief, Department Head, Safety Officer
and Welfare Officer (as per the procedure published in this regard).
 The immediate superior of the victim will arrange for an Ambulance, First Aid and
further treatment of the victim.
 The follow up of the corrective action are discussed in Safety Committee Meeting
and Monthly Quality Meeting.
9. Machines
 The Standard/Safe Operating Procedures published for each job has to be followed
strictly.
 The Emergency stop device of each equipment has to be kept tested all the time.
 The Guards of machines have to be in place all the time.
 Only trained personnel shall be put on the operation of machines.
10. Contractors
 All contractors and their workmen have to follow the points stipulated as per
Contractors Safety Manual.

60
  Concerned MRF Management staff should issue this manual to the contractor or his
Supervisor under acknowledgement and should ensure the contractor and his
workmen follow them.

12. SECURITY DEPARTMENT

Industrial security in the public and private sector can be defined as protection of men, materials,
machines, buildings, classified information, and company operation and to provide protective service
against fire, theft, damage to the company assets and the installation. Protect the valuables of the
company as well of the employees.

The main functions of security department are

1. Control of access.
2. Check thefts/pilferages.
3. Checking In/Out of raw materials, empty vehicles, vehicles carrying finished goods, vehicles
carrying scrap items etc.
4. Maintenance and upkeep of fire fighting equipment, fire hydrant system, wet drill practice
and fire fighting training.
5. Control of movement of personnel and material at the gate.
6. Maintenance, upkeep and documentation of weigh bridge at main gate and at mixing plant.
7. Control and check of entry of contract workers.

In case of an accident in the factory, it is the responsibility of the Security Department to provide the
victim with first aid. The security department should also take them to the appropriate place by
using the ambulance if necessary. The inflow and out flow of inventory, personnel are regulated and
monitored by the Security Department.

Action on outbreak of fire-Types of fire/classification

 Class A fire: - Fire in which a combustible material is burnt –EG wood ,Paper ,Textile etc
 Extinguishing medium: - Water, Soda acid, water, carbon dioxide.
 Class B fire: - Fire on oil, petrol, solvent, spirit etc.
 Extinguishing Medium: - Sand, Foam, Carbon dioxide, DCP EXT.
 Class C fire: - Fire in gases under pressure.
 Extinguishing medium: - carbon dioxide, DCP water flooding.

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  Class D fire: - Fire on metals.

All workmen shall be liable on leaving, entering or while remaining inside the factory premises to be
searched by the security personnel. The search clause is made applicable to the workmen only. The
following are subjected to search at the exit gate.

 Workmen
 Contract Casual Labour
 Suppliers
 Drivers, Cleaners, and Private Vehicles
 Commercial Vehicles
 Company Vehicles

The important documents to be maintained are;

 Standing orders/Security Manual

 Duty Rosters (Staff and Watchmen)
 General Diary
 Visitors Register
 Material Movement Register
 Vehicle Register

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13. SHIPPING (DESPATCH) DEPARTMENT

 Finished goods will be received from Inspection/Packing area size wise, batch wise or lot
wise on the basis of Production Transfer Note. Physical verifications of goods are done at the
time of receipt and Receipt Tags are put. Proper storage and identification of finished goods
is the responsibility of shipping department.
 Finished goods will be stored side wise on pallets with transfer slips showing the size,
quantity, date of receipt etc. Tractor rear tyres, Truck tyres and such others will be stacked
on floor. Stacking norms for finished goods, wherever specified will be followed.
 Shipping will publish Daily Shipping Report wherein finished goods inventory as on date,
daily cumulative receipts and despatches are shown. Copy is sent to Plant Planning.
 Daily Production Receipts and Transfer are fed into computer and Reports are generated.
Daily details are transmitted to Central Planning/EDP/Marketing and data are consolidated
for Report generation and monitoring. Allocation verses Despatch Report is published for
every 10 days period or otherwise as required and sent to Central Planning, Plant Planning,
and Plant Head etc.
 Non-moving/Slow moving items report is published monthly and distributed to Central
Planning, Plant Planning, Quality Assurance, Plant Head, and Marketing etc. Shipping co-
ordinates with central planning to get allocation for non-moving and slow moving items.
Tread rubber/Cushion which exceeds the shelf life of 3 months and damaged products/tyres
packed with wrong tubes will be given to production.
 Statutory Registers and returns as required are properly maintained and submitted. New
Defective Tyres are brought for repairs from outside godowns and inspections by Central
Excise Authorities are arranged. They are re-despatched after necessary repairs. Arranging
Sales Tax Permits from HO is a shipping department function. Preparation of Sales Tax
declaration and Road permits are also done.
 Central Excise/Sales Tax Rules and regulations are observed and prompt payment of duty is
ensured. Any materials returned for re-work are brought to the factory after informing the
Central Excise Authorities.

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 14. PLANT PURCHASE DEPARTMENT

The items purchased by the plant can be categorised as follows;

 Items which come under the head capital expenditure

 Items which come under engineering spares (non-capital expenditure)
 Stationary and miscellaneous items(items which don’t come under the preview of raw
materials)
 Services (repairing of machinery)

Procedure followed for purchase

Any person who needs a material can make a purchase requesting but it has to be authorised by the
department head. This has to be routed through engineering store.

In case of items involving capital expenditure, it should be capital authorisation number. In case of
engineering spares of non capital nature, this is not required.

Based on the indent, necessary quotations are invited and Purchase Order is released. The copy of
purchased order is sent to the supplier, intender, accounts, stores, corporate office PEM and a file
copy for plant purchase.

Procedure followed for repairing

For Repair of equipment or machinery, indent is raised and it is authorised by PEM, and item is sent
to the party from Engineering Stores vide Gate pass. The item is dismantled and the exact nature of
work to be done is finalised and quotation is raised by the outside party. This is communicated to
the indenter. Further clarifications and follow up is done by the indenter. After getting the approved
repair quotation from the indent/department, necessary Work Order is released by purchased
department. Copies are distributed as in the case of spares.

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 SWOT analysis of tyre industry

Strength

 Established brand names.

 Extensive distribution network.
 Good R&D initiatives by top players.
 Product image, Product quality is good and the equipments have its own unique brand
name.
 MRF is the Market in almost every segment of the Tyre Industry.
 Locally available raw material.

Weaknesses

 Cost pressures
 Pricing pressures
 Marketing Department is only at Corporate Office.
 Labour Unrest.
 Union Problem.

Opportunities

 Growing economy especially automobile industry

 Transportation development particularly changing road transportation dynamics
 Access to global source for raw material at competitive price.
 Global Standards and Global Competition.
 As there is an increase in customers to Buy Vehicle.
 Making tie up with new Auto Mobile companies coming to India.

Threats

 Continuous increase in price of natural rubber

 Cheaper import of tyres especially from China

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  Cyclic nature of automobile industry.
 Competition.
 Cost of Raw Materials.

CONCLUSION

In spite of cut throat competition in the tyre market segment, MRF has mobilised itself as the market
leader. The company has a considerable lead over its revels in the tyre market but having a stiff
competition from other global players. The company’s thrust increasing exports to countries in Latin
America, Middle East and Africa will also boost top line growth. The strong performance of MRF is a
combination of high growth in sales along with enhanced operations management and significant
cost saving. MRF tries to provide high quality and technology superior products to its customers.

The study was conducted only at the Kottayam unit, which is one of the six units of MRF Ltd. a
general study about functioning and performance of the MRF Ltd Kottayam was done. All
departments of this organization work together for the achievement of a common goal, that is to
maintain the market leadership and MRF have achieved this in all respect and MRF places No.1 tyre
manufactures in India.

This study has improved my practical knowledge in spite of theoretical Knowledge. Being a student
in the firm has been benefited me with so much confidence and awareness so as to capable of
orienting me to work in the firm has been turning point in my academic curriculum.

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